Effectuation, network-building and internationalisation speed

Abstract

We extend research on the speed of new venture internationalisation by distinguishing between effectual and non-effectual (i.e. causal) network-building approaches, and conceptualising their differential effects on the dimensions of initial entry speed, country (i.e. international) scope speed and international commitment speed. Drawing upon the extant literature on internationalisation speed, network building and effectuation theory, we argue that an effectual approach to network-building is positively associated with initial entry speed and international scope speed, but negatively associated with international commitment speed, while a causal approach is negatively associated with initial entry speed and international scope speed, but positively associated with international commitment speed. In addition, we contribute to effectuation scholarship by elaborating on the causal–effectual distinction in network-building and offering internationalisation speed as an important and interesting outcome variable.